tv Fast Money Halftime Report CNBC September 26, 2013 12:00pm-1:01pm EDT
the whisper number 77%. >> and keep an eye on the vix. people talk about are we poised for volatility out of washington. the vix was up 5% earlier in the session. it has settled down. let's get down to head quarters and halftime. >> here's what we're following today, riding the volatility, stocks trying to break their five-day skid. how should you prepare for more turbulence ahead. catching air, will ackman be a winner for your portfolio? first our top story. it's emerging as potentially the biggest risk to this real t. state of the american consumer. new worries about wal-mart, jp penney and other stores raising concerns of what all of it means to the markets, especially with christmas 90 days away, it's halftime, let's play the action. stephanie, how worried are you about the consumer right now?
>> i'm not that worried. i think they have benefitted from higher home prices, a little better wealth effect from the market. also, they're very selected. they're still shopping. they're just shopping at certain places like on the durable goods side of things, wage growth actually flat. they have a few night amount of money to spend. it's into is to see they're going to the lowes and t.j.xs. i would avoid the apparel companies. >> yesterday, a potential bombshell regarding wal-mart and its orders. j.c. penney, the mess and the noise that surrounds that. how worried should we be about retail and what does that mean to the really? >> at this point i'm not worried. the reason is there have been so many worries. i think if you are close or at a point where it's discounted in the price of the equities him some of the names are situation specific.
abercrombie and fitch. not the high the real visible teen retail. the hot place to be that it was. j.c. penney, they have many, many other issues. so you got to be selective. i'm in macy's still, that's down about 20% from its highs. yet, earnings haven't come down 20%. so i think you got to find those areas, ross stores if you talked out on the store, they're a category kimmer. >> was was added to the conviction yesterday. dr. jay, what about you? what retailers would you buy today, if any, maybe none? >> well, i noticed jeffreys pout out a nice note on the mall retailers. aeropostale, american eagle. both of them moving up nicely today. i think they were perhaps hit a little too hard. they've given back a little of the early morning fizz as they were up better than 2% across the board t. paul retailers, they've pulled back a little bit. i like the way that they're acting. i think it was an overreaction to not terribly well
investigated bloomberg report yesterday. because i read the same e-mail. i came up with a different conclusion than the reporter at plume berg came up with. i think that was used for leverage to get a better deal on what their purchases are going into the next third and the fourth quarters. >> what about the issue, the consumers who have been spending money on their homes and cars and new cars and new homes is tapped out or is getting tapped out, is worried about the economy, is worried about the jab market. as we head into these last three critical months of the year, if you start to think about what could be the catalyst to jump start this rally once again. >> it doesn't seem like they are tapped out. let take that bed, bath and beyond, their two-year costs, 7%. it accelerated from last quarter and the two quarters ago as well. so they're also doing things in terms of gross margin improvement. if you look at this on a two-year basis the sales are actually there. so if you had the product, you had the right product the right
prices the consumers are going to these stores. so that's why you have to be selective in retail. but i don't think will is any signal right now they are tapped out. >> you are saying, go buy the retailers? >> i wouldn't buy the team retailers. gap is doing a good job. dlar not exactly a team. that's a dicey trade to me. those are trading vehicle stocks only. you want to own retail, these trends we are seeing. you are seeing it at lowes, tj, home goods. >> is that enough to carry retail spending to continue the rally? if consumer spending is two-thirds of the economy, is that going to be good enough if all of the apparel retailers or a great majority of them come out between now and the end of the year and when they're going to report earnings in a matter of weeks, a couple weeks, if they have negative outlooks what does that mean? >> wal-mart has specific problems. costco has been doing quite
well. i think the dollar stores have been doing quite well. so it's been pockets in retail. then at the same time, have you to have auto doing quite well. lock at car max the other day. those are blow away numbers. >> i agreement we all talked about the mall traffic and in stores. there are still more and more shopping, plenty of room for growth for companies that sell over the web. so amazon continues to report food sales. >> let's move oranges talk about j.c. penney. >> that certainly is the talker of the day. shares approaching a 13-year low, ceo mike ullman is trying to assure investors it may not be as precarious as they think it is. an interesting note out this morning. deb, god to talk to you as always. >> thanks, for having me on. >> you have cut the price target today of what to $7? >> that's correct. >> from 11. 'mike goldman is apparently telling people yesterday, at least some of tear biggest investors they may not need to raise capital as soon as the
market may think they do. do you believe that? >> i don't think that they need to. but i think that the vendors might feel better if they do before the end of the year and i think that might be what the market was telling, you know, mike ullman yesterday. >> because i think there seems to be a general thought within the market that jc penney's balance sheet may not be strong enough to do what the company thinks it can do in trying to turn things around. >> you know, if you look at where things are right now. if you look at what's happened with several vendors who they have one sender who is suing them, one sender with them five years leaving them. we heard from one vendor who used to sell finance who has started to go to a factor. you know, i think in the vendor community we are starting to hear some unrest. i think that there is some
general concern that, you know, this is a company who, you know, had been on fairly solid footing and, you know, has disappointed and, you know, if you read the company put out an incredibly well worded press release today that said it still anticipates it will experience positive comparable sales trends coming out of the third quarter. not for the third quarter, but it co you would be on the very last day of the third quarter. so it could be plus 1%, but on the very last day. >> right. as the pane is trying to shore up its, you know, vendors, i want to be careful what we're saying here. you're saying that a vendor which had a direct credit line with j.c. penney is now using what they call in the industry a factor, which provides financing to the vendors. correct? >> that's correct. so i think, you know, you are seeing, like i said, they had long-term relations with the company. alan schwartz, you are starting
to see vendors who are invex, i'd say it's unrest and i think that there is concern and the company had taken on a very different direction. right. 90% of what is sold in the home, which i would tell you was one of the key reasons that consumers used to go into penney's. 90% of the product exchange as of june, 2013 t. company, 20% of their business used to be home. it's only 10% now. so i think that the company used to find -- needs to find a different reason for the consume tore come in. they used to coupon like heck. i think we had expected, right, chief marketing officer, with mike coming being. mike used to be the king of coupons. we are not seeing that, which probably tells you the company is not confident in the product in its store. so they got to come up with a new plan pdq because we're going on a holiday the biggest season of the year.
>> we did get a move in the stock when i reported earlier that mike goldman was telling people yesterday some of the investors they don't need to raise capital as soon as the market may think. i know you mentioned what you did about a vendor, which had a direct credit line with j.c. penney using a factor. it's important to note the component e company put out a statement saying they are having no issues with vendors or financing terms changing with anybody either. i think it's important that we note that. you do also in your note today mention a liquidation value of a dollar a share. >> right. one of the issues here is that, you know, because the company basically, you know, when they did this turmoil, they basically, you know, utilized almost all of their real estate and everything else except for, you know, some of the land around the headquarters and they have these i call them tire and lube locations and some of the mall partnerships. all that together is worth 300 million. everything else is basically
encumbered. so this is one of the issues that there isn't much else that's less and so unlike sears, which has, you know, has not encumbered its, you know, real estate or anything else, j.c. penney is a completely different scenario and that is one of the reasons, that, you know, we're having the conversation that we are. i think that some of the vendors and some of us, you know, on the investment community would feel a bit better in getting to the holiday season if they were to tap out of the equity market. probably something the 500 to 700 to $1,500 range we'd all feel better. >> deb, mike murphy. a question about the real estate. there has been a talk about a deal with samsung a store within a store, they would look for someone to come in and help and union rate near term cash flow and increase traffic in their stores. any thoughts on that?
>> i think that would be brilliant. what you seen them do before is really change the look and the feel and mike ullman was the brains behind that. and i think that's been honestly one of the best things that's been done, you know, under his prior ceo-ship. i think that you know if you could start to, you know, they obviously do, i mean, one of the things ron did while he was there, the stores do, they're clean, they're easy to shop and i think that would really chaening the lock and feel and drive additional trank and hopefully ticket t. thing is, you know, finding that partner and also getting things rolled out quickly, you know, those are obviously the keys there and, you know, once again, when you are seeing vendors, you know, leave them, you know, that's obviously the question at this point in in the game. >> appreciate the conversation. thanks, for calling in. we will see what develops in the hours and days ahead. >> thank you.
it's a table for two, cnbc carl icahn, they will have a meeting next week. icahn has been outspoken, a few people on this desk probably are. >> i don't expect anything. he got the most flush company in the world with the largest buy back on record and by the way, they're selling, you know, it extends going past as the phones mature a bit in the next few months. there's the initial numbers. the outlooks are good. i don't know what he wants to do. he doesn't own enough of the stocks to make a difference. >> you don't think this is going to make a difference? >> i don't know if one specific meeting makes a difference it's been telegraphed. >> forget the meeting. talk about the person. >> i think he can make a difference, unlike other activists, carl isaun hasn't made mistakes the simple fact that tim cook is sitting down
gives credibility to what icahn is wanting to do. when you couple that with the recent iphone data, you can see the stock break out. >> he will not do anything other than give him more dividends or something like that. he will not be able to impact the product cycle story, right? that's why you want to own this stock bus of the product story and the china mobile deal. so i think the stock is in the trading range. you already got through the big news of the iphones, now we have to wait for the whoin i china mobile deal. >> by the way, dr. jay and i were on 59th avenue, the flagship store. i think we were both stunned at how crowded the store was. >> that store is always crowded. >> you could probably take half the people out of the store, it would still be more crowded per square foot than any other store. >> i will tell you, it's always that way, it's right in the middle of the area. >> the huge 5s. >> because of all the tourists coming in. to your point, why shouldn't you sit down with carl icahn?
the guy is worth $15 billion. he's a tremendously brilliant investor. >> that is reason alone to sit down. i don't think it gives any credibility to what icahn may or may not do there. >> we know that icahn wants to have the price go higher because he's an investor there, right? he has been buying the stock around these levels. he said so. the fact that they're sitting down definitely means something. >> stocks looking to end the longest losing streak of the year. one money manager says now is the time to up your equity exposure. yahoo is trading at levels since '07. our own dr. j. did some digging. he will tell you how to play it next. in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second.
>> all right. welcome back t. s&p is coming off the longest losing streak of the year. our next guest says it's time to buy. bessemer trust overseeing $60 million. >> hi. >> why is now the time? >> well, i think there is a couple things going on, one the global economy is improving. the u.s., we get mixed messages the jobless claims best in the expansion. you were talking about the consumer earlier. we are talking about net worth growing by 1.3 trillion. in q2 probably 4.2 trillion.
consumers are getting wealthier. i think the consumer outlook is good. the job stimulation is improving. europe is doing better. the world is doing better. you have the fact the fed isn't moving quickly. we know who is not in charge of the fed, which is god news. >> i would come back and say what's the problem since the no taper? why? >> well, i do think we have a couple head winds we node to get through with the continuing resolution and the debt ceiling coming out of washington. we still want to see who the next fed chair person is. and we don't know when the fed is going to start tapering. so $few unknowns. in the big picture to me, if i lock at the next 12 to 18 months, we will get resolution on these t. fed is going to move. rates are going up. >> that is going to help equities. >> continue to climb that so-called wall of worries in the incremental ladder. >> the worry helps us. we know hedge funds are not
stretched. pension funds, mutual funds under alocated. the positioning in what i think will be a capitaow got to have jobless claims certainly good. we'll see what payrolls do next week. is that going to be enough to calm them down? i think they'd like resolution on thetiming. but i know it's going to happen. >> rebecca, i think the whole reason the fed did what they did was not due to the economic inputs as much as the potential of the deposit shut gown udown and/or this ongoing debate that's, you know, taking center stage in washington. so i think if we get past that, which i don't believe by the way would be october. >> probably not. >> in october, island agree with you. we could see an october taper. i don't think we see it until a minimum of december. >> in which case that's going to be more liquidity in the system in the u.s. as well as japan. now the european central bank is
talking about perhaps more liquidity injections. >> we had this study on the desk on whether the u.s. was the best place to invest, if youing will, emerging markets, are you over or under will? given the decline they've had and rapid snapback as a result of all of the taper noise. >> we're still staying overweighing, developed markets under wait, emerging markets. i do think there might be a trade in emerging market equities. the german data is important. you think about china, don't ignore germany. exports mainly to china. it is doing great. so i think the em story helped by liquidity, helped by china could have some legs to it. it goes back to the taper again. when rates start rising, the $ starts climbing again, i think those are major head winds. i think it's a trade, for us being more medium term investors, i think we will get a lot of the upside. >> say we get a good payroll
note or a bad payroll number. i can't decide which way the market goes based on. and if the government is opened. >> well, yeah. >> right. >> somebody has got to report the numbers. >> trying to figure out what the markets will do an own given payroll day. you might as well take some darts and throw it at the board. i think the bigger picture trend is we are seeing slow improvement. as we get into earnings season, they always did carefully t.ceo is never going to be overoptimistic. are they seeing things stabilizing in the u.s. are they being only cautiously optimistic on job growth? if we still see slow but steady hiefring in the coming months and quarters as we went it's a god picture to the u.s., we will get to tapering. what the pay roms do next week for the market, i'd throw that back to you. >> don't do. throw it around the table a while. >> we'll see you again shouldn't. let's hear the biggest pops in mid-day trading.
cease sars is dropping. >> seize sars came out and announced a secondary tear. this stock has been on a huge run. i think it's interesting around 19 sitting on the 50 day. >> bed, bath and beyond. >> margins actually improved over the last two quarters, good comp basis numbers, easy comparisons and internet coming their way. >> weiss, lily. >> a couple drugs didn't do well in the pipeline. they need end points. so that's pressuring the stock. it goes to the pipeline. i think you got to stay away. >> dr. j. yahoo? >> we had action earlier. this stock has exploded to the upside. now, somebody put on a massive bet t. biggest trade i've seen in yahoo in years. somebody bought 7 million share equivalent of the january 35 calls, sold the 40s against it, judge, that's a bet that this stock goes basically another 20-25% higher, probably ali baba based.
coming up, should you buy the dip in hertz or buy the rally in facebook? the winning move on today's biggest stock stories, treasuried headed to their big month. can it last? we'll get the red from the pits next. [ bagpipes and drums playing over ] [ music transitions to rock ] make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you open an account.
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>> welcome back to ""fast money."" some very dovish remarks at this hour, saying the fed must do whatever it takes to end high on employment. it must be willing to use any tools mo matter how unconventional to achieve higher rates in the economy, doing what it takes may add stimulus or keeping the current policy in place for longer. low levels of inflation, he says, show the fed has room to provide additional stimulus. the fomc should adopt a trig tore deploy additional stimulus
if targets are not met. he's the second official to talk about targets today. with a goal oriented communications and actions by the fed, it may not be easy, benefits will be significant. he compares the current situation to 1979 when voelker said he would do whatever it takes to we have down inflation, he thinks the feds should adopt a tim similac attack. and it will help economic activity and bring down the unemployment rate. scott. >> steve, this message should not necessarily be surprising given the messenner, right? sample no, that's true. i will tell you this is what i thought the fed's policy was before that june meeting surprised me, where they laid out a table for tapering. then in september again they restated again. it's a little confusing.
i think what you say, they may have a credibility problem. it's a way to claw back the discussion with the market. >> let's see if they achieve that goal. our top three trades at the wall. hertz is slashing the full-year foreca forecast. >> its had a huge run, up over 26. they're integrateing the 1.50 deal. i think what the markets really punishing hertz for is the way this news came out. this was shown on a slide and investor presentation. they didn't come clear to the market with it. i think that's one of the problems here. hertz story long term is fully intact. >> plaque berry, fairfax chief telling the ap he is fully
intending to go through with this company's buy back offer. down 1 and 2/3 percent. it was like 9 bucks per share. so we're below 8. >> i think they're voting with their feet, judge, the shareholders here. i don't blame them. although, yesterday, a little bad news, of course that, hit the stocks. a rumor t. mobile was going to drop them. no longer support the blackberry products. >> that denied. they will support it on the new yorker. but, yeah, this is dead money i think. i don't want to touch it. >> let's take a look at facebook, this has been a remarkable move in this stock the last couple months, breaking 50 bucks. that's significant, is it not? >> it is. hopefully it becomes support right now. >> i added a few things i have done in the market. this is the definition of momentum stock to top one
another. scott, somewhat of a valuation support versus stocks like tez la. so i like it. >> it was updpraded by a really good analyst at jeffreys. >> right. >> he upped his target today. he upped the stock in may at 2003. he bottom ticketed. for him to raise the target. that's a good thing. >> right. >> let's talk bonds for a moment, giving up this weeks by gains, giving up the news, for more let's go to the futures pits, jackie deangelis, the host of "futures now. >> it's been the best of month for bonds, a lot of investors, let's go to the pits. what is driving the rally right now in bonds? is it fear of the gridlock in washington? is it the sell-off in stock? >> well, it started actually with the no taper with the fed. i think that started. also, we have to put in a little janet yellen becoming fed
president. larry somers was a completely different story there. we got a bid on that alone. now as we head into the debt ceiling debate, whether or not we've shut down the government. i think bonds will get it again, steve liesman is reporting the feds will do everything they can. it's all good for bonn right now i don't think we should get it. >> what are the key levels and how low do you think yields can go? >> i don't think they go much below that. if they did, somewhere in the heads of the fed, or else the chairman would have never mentioned it at noon. i think taper talk resurfaced. the they saying, he's said that kind of stuff and picked up one full handle. >> jimmy, i tell you, that's the
first fed official i heard that said they could add stimulus to the markets. >> i heard that, too. >> gentleman, we will put it on the bond. tune in, futures now doubt cnbc at 1:00. we will have dennis gartman the commodities king. he is bullish on stock, more bullish. this is the futures now, you don't want to miss. >> jackie, we won't. 1:00 on cnbc.com. up next, ackman moving on. is it a reason to boy the stocks? whether ackman has the touch. inside this year's hottest way to trade. we will get a look at what etf investors are boying with one of the industry's biggest shops. .
. >> we need a big win, the current ceo will step down in 2014. is all this news a reason to buy the stocks? murphy the bear, a buck 30. stephanie make your case. >> i love the fundamental also. they have good exposure to growth end markets like auto and housing and electronics. they also have a good exposure to the national markets, about 57% of the total revenues outside the u.s. that's where i think you want to be in 2014. most importantly, it loads to the restructuring efforts this company started to do, under the ceo. they started to cut costs and to get not as much cyclical and more recurring revenue streams and more predictable revenue streams. so i think the restructuring started. i think this new board will kind of continue on this path. so i think the returns over time
can catch up to that. >> i will cut in. you made it through that whole part without mentioning the big elephant in the room, bill ackman, i think the stock traded 1.14, it's trade back to 1.11. i think to boy it at thissing to is to make a trade for bill ackman. the stock has already had a huge run. there was no plans that i have seen anywhere for this ceo to leave unless he was pushed out by bill ackman, do you agree? >> i would say number one this company is doing a great in terms of structuring and put them into a better position? >> isn't that the case, though, with many activist situations, there isn't the final push until the activists get involved. i think there somebody some questions about the performance of the stock. >> the stocks have done very well. i think stephanie pointed to the restructuring. i think he was doing a food job. i think right now, if it's
ackman, in fact, who pushed this current ceo out, as appointed or approved these new board members, i think you are looking at what is ackman's next move? >> last word. >> the restructurings, yet their returns and efficiency levels are below their peers. >> that is the piece, that i have great track records, in terms of structuring and getting out better efficiencies. they will drive this thing hire. >> who made the more compelling argument? >> well, i think ackman has made the easy money in the play now. so the issue is that it's still a great company. but i would, if i had a position, which i don't judge, i would be lightning up and/or here rather than sticking around. >> i think this is very, very positive because you have to separate the industry from the
country. >> etell us who you think won that debate. tweet us. we're going to have the results at the very end of the show. switching dpers to the emerging markets. they were hit hard this year when rates started to rise in the u.s. our next guest says there are now some great opportunitiesch joining us now from new york, wisdom tree, director of research, jeremy, welcome. >> thanks, for having me. >> do you think the worse is the over? >> no, i have been thinking that if the markets were overreacting to news of the fed tapering. i think there is a lot of opportunities from the evaluation perspective. when you look at it, just the last three years of, the s&p is up 50%, but emerging markets are flat to negative. so you look at the u.s., it is trading at a 50% premium multiple emerging markets. i'd say the expectations are so low, it's becoming harder for them to surprise on the downside. so i think there are some food opportunities in the emerging
markets today. >> the problem is, they've snapped back from that oversold decline or overreaction. >> that complicates matters, doesn't it? >> well, they had started to do better this month. again, the pes today the u.s. is 50% higher than they are today. there's a lot of markets with mid-single pe ratios in russia and china and the energy companies and the financials. there is not a lot of markets where you get that opportunity with such depressed prices. expectations are so low. i think it's easier for them in the upside. >> where do you want to be? >> at wisdom tree, we have to find the emerging equity income, our biggest position, has russia been raising dividending the last three years? they have been talking about the ratio from 25 to 35% over time over the next few years. those are some of the cheapest stocks in the emerging markets at a 50% discount. so we do like russia today as one of our bigger positions.
>> the holdings, trying construction. bank of china, what's the best emetf right now that you have in your portfolio? >> i do like dem. it is that cheapest stocks that we have of all the different equities. dem is really the cheapest basketball that we had today. >> guys, what do you think about this russia play? >> i think it's not an unknown play. every emerging markets expermit i'd be hard pressed to think of one that didn't say i'm in russia first and foremost. that's the best market. from an individual perspective of retail. >> japan looks crowded, if it goes up, it goes up. >> i agree, it's easier to analyze japan. >> from a valuation call, you can say they're also very cheaper. >> jeremy, you got a quick comment on those two traders? >> japan has obviously been the
interesting story of this year. everybody is talking about the fed tapering. just as the bank of japan is starting to ramp up their purchases. so i think that's one of the reasons people overreact to the fed. the bank of japan is stepping in. they will provide a lot of port to the emerging markets. you see japanese companies buying emerging markets. i think japan has more to go as well. from a pure evaluation, it's an overachiever. >> jeremy schwartz with wisdom tree. still up on the half, herb green interk at it again, he is raising the high flying, easy for me to say, i need a little water here. >> does he own a white flag or a red plague? >> a high fly gluteen free stock. we are about to play a little sectornommics. herb is working the phones, i'm working the water. see you in two. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading.
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and the furniture's a lot nicer. and suddenly, the most important person in my life is someone i haven't even met yet. who matters most to you says the most about you. at massmutual we're owned by our policyowners, and they matter most to us. as you plan your next step, we'll help you get there. >> and coming up on power lunch at the top of the hour, all power, for the lunch, j.c. penney and blackberry, what does the future hold for these? plus our crime and punishment file, a high profile poenz scheme in long island, shocking. see what your money buys you in portland, oregon. back to scott. >> see you at the top of the hour in about 15.
as we head towards the winter season. is it time to turn up the heat on energy names? >> the s&p 500 energy sector has been underperforming so far this year. so what big themes should be focused on in the 4th quarter. we asked andy lipa and gas buddy.com. they told us first the u.s. energy boom is huge. texas is producing more oil tan eastern. all that natgas in places like pennsylvania, north dakota, all that is going strong, cheaper u.s. energy sources has benefitted consumers an manufacturers. watch for that trend to continue. second, all that will benefit refiners. mid-stream pipeline builders. andy likes a few names here, bo ler ro, tesora, kinder morgan. political risks, tensions seem to be eadsing in libya, iraq, nigeria, iran, tom tells us
close years of european refiners will only further boost the process for busy u.s. refiners. finally what do you get when you increase refineing along with lower geopolitical risk? the perfect formula for cheaper prices at the pump, which is good news for everybody as we head into the holiday shopping season. coming up, we will tell you how all those lower gas prices are impacting the retailer. over to you. >> guys, let's play these names. >> play the service stocks. the service, if all that drilling activity is going on, those companies will do the best. >> i think the refiners are very interesting. they come down so much on names like bolero. they are down near trough levels. they're a great boy here. >> let's talk gluten free, that trend has delivered serious dough to investors in boulder brands, it's a health company.
contributor herb greenberg sees blareing red flags, he joins us now. >> i do. i have a list on street.com. what i'm pointing out is this gluten-free trend, is it sustainable? the closest thing to a pure play, receivables, growing much faster than sales for eight straight quarters at levels that are substantially higher than sales. you have discrepancies 2009 sales in to and out of the channel. they are growing greater into the channel than they are out of the channel if you use nielsen numbers. that's for the company as a whole. sales growth, the two big gluten-free brands have been falling in the past two quarters quite substantially, especially versus december. inventory at the same time is growing. what is interesting, the company is expanding. gluten-free is going main stream into conventional areas t.cfo of
the company is christine suko. she is talking. dismisses all of these, has good explanations, i'll tell you, the gluten-free trend, even though it's currently a good area. >> i don't know is trnd really the right word? using words like sustainable. is that right? there is a sizable segment of the population that suffers from silliac. >> knoll sizable. 1%. my daughter is one of them. >> 1% is still a decent size market for a specific company's business. unless they find a cure, those people won't stop buying those products. >> the market for that, the end market for that is relatively small, though. it's not what you would put such growth into it. let me tell you, you have competition, a group of bimbo known for entenmans, they're coming out with their good-bye gluten brand. you have a lot going on in the market. >> loppy doop. >> cookies, she's all gluten
free. >> because of the edge, the tom daschle premium you get for that. >> doesn't that expand the comi relatively small market out. lends credence to the market. >> why would you buy gluten-free products unless you believe there is some health benefit if you don't have to be on a gluten-free diet. and i'll tell you something. >> the same people that believe there's a health value. >> here's what's interesting. if you're not celiac, don't aus a gluten-free diet because more calories, less nutritious. that was from the nutritionist, not from me. >> you ever hear of wheat belly? leaving one of our traders in the dust. up next, find out who made the bad call on delta. yeah, you.
all right. welcome back to "the half." not so fast, mike murphy. traders are quick. that's you right there. murph? right? >> i'm here. >> the handsome guy. >> coming after you right now. >> let's do it, come on. >> because earlier this many you made a bearish call on delta. you want to listen to? >> let's listen. i would not be a buyer. i'd be a seller. this rally today of over 7% on delta, i'd be a seller on that news. i think higher oil rice are real -- oil prices are really going to hurt them in the future.
>> well? >> i still don't like delta. i still wouldn't buy delta here. yes, the whole space has rallied. i believe that the merger, the american merger, is going to go through. i don't know how that's going to affect delta. i'm not -- i don't love the airline stock to begin with, but i wouldn't have bought delta 8.5% ago. i wouldn't buy delta here. >> weiss is giving you an open invitation. to critique. zwla he does that so often. look, here's what's going to happen once the merger happens, okay? it's going to be beneficial because you're taking e ining m capacity out of the system. they may benefit from the gates at reagan. >> you were long american. you were saying it was going to double digits. you got smoked. it got cut in half. zbl i'm long american again. >> we discussed this the other day. the ride from 7 to 2 wasn't fun. >> i wasn't there for all my position. i did get smoked for part of the approximation f position for sure, but not all
of it, and now i'm wack into it, more so. i was beautiful going down. it was painful going down. >> my only point is the airlines are tough to call. >> they were, but what you're missing is a whole new generation of ceos in the airlines that are running it for profitability rather than just running it for their cash flow. >> all righty, then. >> and it's been working. >> it has. >> when you, the viewers, ask, we deliver with four stock that have lit up my twitter feed. microsoft, anadarko, cvs. first up. >> hike resoft, still like it. i believe they'll have a surprise announcement with the ceo. i think that's another reason to own the stock, judge. that and some of the other recent move they've made. >> anadarko? >> i like it. we actually trim a little just to take some profits, but i do like it for the long term. they're making asset sales. there's more on the pipeline they're going to do. they're going to use that cash and increase their production growth rate. if you own it, you stay with it. >> weiss, cvs. >> i like cvs here. there's talk of going around
these guys, all the drug retailers, but i don't think it's going to be so evident. i like the stock. >> all right. we're going to take a quick break. we'll find out who you think won the debate. we'll even get some final trades and hab we'll page fun of a trader when we come back, too. ♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond.
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receiptmatch on the business gold rewards card synchronizes your business expenses. just shoot your business card receipts and they're automatically matched up with the charges on your online statement. i'm john kaplan, and i'm a member of a synchronized world. this is what membership is. this is what membership does. the people have spoken. we have counted the results. murph, a little redemption. mike murphy won the debate on air products. give us a final trade. >> i'm going to go with genworth, gnw. i think the stock ifs a lot higher. >> steve weiss? >> i'm going to go with jc penney on the short side. >> leaning on the short. >> i am. also i think the russell's a little overbought here relative it the s&p. >> so you have two final trade for us. >> i do, i do. >> the producers didn't get my change in the final trade. >> you're welcome. >> i'm going with dnr, buying
nat cole. >> i like ppg, the restructuring, $3 billion in cash. >> that does it for us. have a great rest of the day. we will see you tomorrow. and "power lunch" begins right now. "halftime's" over. the second half of your trading day begins now. >> scott, thank you very much. stocks under siege, two of them, jc penney and blackberry, desperately trying to reverse their fortune. the big question is can they? stock trying to break that losing streak. five straight days of losses as we begin to wrap up the third quarter. we're going to tell you how to play the next few months and could small caps be your best play, or as mr. weiss believes, are they a little overbought relative to the s&p? and what's in a name? plenty, it seems, when it comes to health care in america. we'll tell you. some startling stats coming out of our